My thoughts on the FTX thing
I share those values, Lyle, and appreciate this post. 👍
Thanks for writing this, Lyle! I know a minimal amount about this space but have a good friend that’s in this space from whom I take all my cues. I have mostly BTC (small amount) on Coinbase and he’s warned me of the risks of having it on an exchange instead of self-custody, but I was relieved to see their CFO come out and affirm that Coinbase holds assets 1:1 and makes its money primarily on the transactions, which is obviously not what FTX was doing. I agree with all your points from what I understand and think the decentralization is a great feature that will ultimately be a benefit to help offset the wild control of the central banking system. Cheers brother!
I don’t know much about crypto, but I found a lot of value in this piece, largely because you made a distinction between centralized exchanges and DeFi. Here’s why question: why did so many people opt for exchanges like FTX? I’m sure the Super Bowl ad helped, but I guess what I’m asking is what’s the value prop of the exchange?
As a person who knows almost nothing about crypto, I found this post incredibly useful! I’ve been hearing all these names in the news lately, but didn’t quite understand what happened. Thank you for taking the time to share your expertise with us!